By Ray Birch
CHELSEA, Mass.–One credit union is not only now paying front-line staff a new, higher $50,000 starting salary, it has also created a new role for member-facing teams to provide more growth opportunities and keep workers at the CU in what has become a challenging staffing environment for all employers.
The $2.6-billion Metro Credit Union said it has “reinvented” its retail and contact center employment and compensation structure, creating a Universal Program Model, which is how it describes employees who cover many different duties across the CU. All branch retail and member service center reps are paid at least $50,000 annually, which is the new starting annual salary, explained President and CEO Robert Cashman.
Cashman said the new initiative also seeks to provide additional career opportunities and to “upskill” the credit union’s employees, who will also have chances for additional compensation through Metro’s bonus programs. Existing employees are also eligible for the new program.
Ahead of the Curve
“Reaction from our employees, and the community has been very good so far,” said Cashman about the new model that was introduced in early summer. “One of the reasons that Metro has been so successful over the years is that we try to be at the forefront of things. We look at the landscape and how it is changing and we adjust. We don’t mind being out there ahead of the curve. Our greatest asset is our employees and that's where our focus is.”
In addition to support for the program from staff qualified to participate, Cashman said others within and outside the organization are wanting to be part of the new model, as well.
“We've had individuals within the organization—in call center, branches and back-office departments—who are very interested in applying for this position, as well as individuals from other financial institutions and from other industries,” explained Cashman.
The New Roles
The newly defined roles include:
- Sales and service representatives in branches and the Member Service Center, who will earn annualized compensation of $50,000
- Sales and service supervisors, who will earn annualized compensation of $52,000.
Under the new Universal Program Model, employees are required to learn at least one additional skill outside of their primary job responsibilities—assisting Metro’s lending division, queuing calls or emails, operating an interactive teller machine, or engaging with members digitally through video banking or chat.
For each new skill, employees are eligible to receive a fixed bonus figure each quarter, increasing their total annual compensation.
Float Employees
In addition, Universal Service Specialists, or “float” employees designated to assist in various areas of the credit union as needed, must master multiple skills as part of their primary job function. These employees will earn annualized compensation of at least $55,000 and can earn additional compensation through existing bonus program, Cashman said.
“As employees learn additional tasks they’re also exposed to other areas of the organization and can find out about different career opportunities,” said Cashman. “Not only can they learn about other opportunities, they may find that a new task they are assisting with is something they like more than their current role and request to move into that area.”
Just as so many other employers have had to adjust, Cashman acknowledged it has become more difficult to attract and retain employees as the pandemic dramatically changed the face of the work environment. He also believes front-line staff were affected the most by the health crisis, which negatively affected some employees’ attitudes towards their jobs.
Becoming Bored
“We also think some employees became bored,” said Cashman. “We're seeing people wanting to learn more and take more responsibilities, expand their knowledge base. It’s clear that will help make employees happier, and retain staff.”
Although he declined to share the specific amount, Cashman said the new higher starting wages—which are “significantly” higher than previous starting pay—and new opportunities will not only make employees happier, but also more efficient. He said the additional skills will make staff more effective in dealing with members as they connect with the credit union via many different channels.
“Ultimately, this will lead to us running the credit union even more efficiently,” stated Cashman.
Wage Pressures Across Industry
Cashman said the wage hike was not in response to the big banks’ headline-grabbing moves to hike front-line wages. As CUToday.info has reported, Bank of America, for example, announced it will move to a $25-per-hour minimum wage for front-line staff by 2025.
“At some point the entire industry is probably going to have wage pressure to go with that,” said Cashman. “But we do salary surveys, we review the local markets and the $50,000 we are paying for staring front-line wages is the best in our area. But what this is really about is making sure our employees are happy, fairly compensated, have great career options and become even more effective.”